Ford Press Release: Trotman Says Ford 2000 is Working Well

05/16/96

TROTMAN SAYS FORD 2000 IS WORKING WELL

KANSAS CITY, Mo., May 9 -- Ford shareholders,
meeting west of the Mississippi for the first time in the company's
history, heard Chairman and Chief Executive Officer Alex Trotman
describe the progress made in the automaker's global realignment.
Trotman said that significant early successes, including a further
streamlining of the company's product development process, are adding
value for customers and stockholders.

The Ford chairman outlined new plans to continue improvements in the
efficiency of Ford's product development process by expanding the roles
and authority of the vehicle line directors responsible for new car and
truck development worldwide.

"One of the most important early benefits of Ford 2000 has been
finding far broader and more varied uses for our new platforms than we
had earlier envisioned, and our vehicle line directors play a key role,"
he said.  "These are highly talented business people from all over the
world who work well together and are part of our future leadership.  As
a result, we'll need less management structure above the vehicle line
director, and that's what our study team is working on now."

Trotman gave a number of examples of the progress of Ford's
reorganization efforts, including significant cost savings in product
development that will allow Ford to reach its goal of a 5 percent
average return on automotive sales over the course of a business cycle.

"We will spend $11 billion less on products over the next five years
than under the old regional organization," he said.  "At the same time,
we're adding more products and pulling ahead other products, we're
funding growth initiatives, and we're entering new segments in our
established markets of the U.S. and Europe."

As an example of a new segment entry, Trotman unveiled for the first
time the 1997 Ford Expedition, the company's first full-sized four-door
utility vehicle, along with the new Ford F-250.

"Ford is the world's largest producer of trucks," he said.
"Customers have made the F-150 the best-selling vehicle in the U.S., and
he Ford Ranger and Ford Explorer the best-selling vehicles in their
segments.  We're confident the Expedition will meet the customer's
expectations, too."

Expedition, F-150 and F-250 are all based on the same new vehicle
platform and share up to 50 percent common parts.

Other examples of progress given by Trotman to reach the 5 percent
return on automotive sales included: annual savings of more than
$1 billion by the end of 1997 through increased engineering efficiency
and reduced complexity and $1 billion annually in material costs
savings.

In reviewing 1995 and the first quarter of 1996, Trotman said that
the major product launches that had lowered automotive earnings were
nearly complete.

"I expect the remainder of the year to be much improved over the
first three months of the year," he said.  "Our automotive capital
spending, as a percentage of revenue, has peaked and will decline moving
forward.  And the many cost improvements we're making in materials,
engineering and manufacturing are beginning to flow to our bottom line."
Trotman continued, "Automotive profitability should show significant
improvement over the next few quarters."

He cited the continuing strength of Ford's Financial Services Group,
and specifically the successful public stock offering of Part of The
Associates, as another strategic initiative for improving shareholder
value.  Trading began May 8 on the New York Stock Exchange.  The stock
was initially priced at $29 per share and closed at $34 3/4.  More than
25 million shares were traded.  Six million shares were purchased by
Ford and Associates employees -- believed to be the largest employee
participation ever in an IPO.

Trotman concluded by saying Ford was redesigning itself to be
successful in an increasingly competitive world market.  "We're
preparing for the next millennium by reinventing our company and the way
we do business.  We're focusing on fundamentals: lowering our costs,
growing profitably in both mature and emerging markets, developing
excellent products, satisfying our customers, and enhancing our return
to shareholders."